New data released by the Office for National Statistics (ONS) unveils the most affordable places to purchase a home in England and Wales. The affordability ratios have now returned to pre-pandemic levels, comparing the average income of full-time employees in an area to the average house price for 2024. In England, house prices rose by 1% since 2021, while average earnings saw a 20% increase. This translates to the average home in England costing 7.7 times the average earnings, and in Wales, it amounts to 5.9 times the average earnings. To afford the average house in England with an annual salary of £37,600, one would need to save for almost eight years. In Wales, with an annual income of £34,300, one would need nearly six years to save up.
The most affordable local authority identified was Blaenau Gwent in south east Wales, where the average home would require 3.8 years of the annual salary to purchase. Following closely behind were Burnley and Blackpool in England, tied for the second most affordable, with homes costing 3.9 times the annual salary in their regions. Other areas where purchasing a home falls below the five-year mark include Stoke-on-Trent (4), County Durham (4.1), Blackburn (4.1), Kingston upon Hull (4.1), Neath Port Talbot (4.2), Hyndburn (4.3), Hartlepool (4.3), Sunderland (4.3), and Cumberland (4.4), among others.
Conversely, Kensington and Chelsea emerged as the least affordable place to buy a house in England and Wales, where it would take over 27 years worth of the average salary to afford a home. Other least affordable areas include Westminster (18), Richmond upon Thames (17.2), Barnet (16.7), Hammersmith (16.6), and Wandsworth (16.3). Surprisingly, London experienced 10 of the largest decreases in affordability, making it more accessible. In contrast, the East Midlands saw the 10 largest increases in housing affordability between 2019 and 2024.
The new data provides valuable insights into the housing market dynamics, reflecting the disparities in affordability across different regions in England and Wales. It sheds light on the challenges faced by individuals looking to purchase a home, particularly in areas where housing costs significantly exceed average earnings. As the housing market continues to evolve, policymakers and stakeholders may consider these findings to address issues of housing affordability and promote more inclusive homeownership opportunities.
The detailed report from the Office for National Statistics offers a comprehensive overview of the affordability landscape in England and Wales, highlighting both the most accessible and challenging regions for potential homebuyers. The information serves as a key resource for individuals navigating the housing market, providing crucial data to inform decisions around property investment and homeownership. Moving forward, these insights can support efforts to create more equitable and sustainable housing policies that benefit communities across the region.